📊 What happened?

PCE inflation (July) = 2.6% → matches expectations

Core PCE inflation (removes food & energy) = 2.9% → also matches expectations, and it’s the highest since Feb 2025

🤔 Why does this matter?

The Fed (US central bank) watches PCE inflation the most when deciding interest rates.

Inflation is still above the Fed’s target of 2%. That usually means they should keep rates higher to cool prices.

🔑 But here’s the twist:

Even though inflation is a bit sticky, the Fed is still signaling rate cuts later this year (September & December).

This is because the economy is slowing (lower growth, cracks in jobs market), and the Fed wants to avoid a hard landing.

🟢 What it means in simple terms:

Prices are still rising a little too fast.

But the Fed is prioritizing economic growth over fighting inflation right now.

Rate cuts = cheaper borrowing → more spending & investing → stocks & crypto usually go up.

🎀MY POV:

Inflation is still “sticky,” but the Fed is willing to cut rates anyway → this is bullish for markets (stocks + crypto) in the near term.

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